Macroeconomics of Development

Recommended Prerequisites

Macroeconomics I; Macroeconomics II; Economic Policy and English Language skills.  

Teaching Methods

Lectures on the different contents of the course and tutorials that guide the students on the presentation and discussion of a proposed paper and the comment/discussion of two other papers.   

Learning Outcomes

 This course aims to provide a rigorous analytical framework for the treatment of the main macroeconomic problems that a developing economy faces, such as the public budget balance, the development of the domestic financial system and the foreign exchange rate regime. Based on a macroeconomic model designed for developing economies, students will learn to: i) identify structural macroeconomic features; ii) understand and model macroeconomic mechanisms and iii) analyse the macroeconomic policies resulting from the model.   

Work Placement(s)

No

Syllabus

1. Importance of short-term macroeconomic performance for economic growth and main macroeconomic characteristics of developing economies

2. Fundamental macroeconomic model of a developing economy

3. Public finance and macroeconomic performance

4. Financial system and macroeconomic performance

5. Foreign exchange rate policy

6. Seminars.   

Head Lecturer(s)

António Manuel Portugal Duarte

Assessment Methods

Assessment
Periodic or by final exam as given in the course information: 100.0%

Bibliography

FISCHER, Stanley - Growth, macroeconomics, and development. In NBER macroeconomics annual. Ed. Olivier Jean Blanchard and Stanley Fischer. Cambridge, Mass : MIT Press, 1991. p. 329 - 379.

MONTIEL, Peter - Short-run macroeconomic issues in development. In INTERNATIONAL handbook of development economics. Ed. Amitava Krishna Dutt and Jaime Ros. Cheltenham : Edward Elgar, 2008. Vol. 1, parte 3, cap. 16.

MONTIEL, Peter ; SERVEN, Luis - Macroeconomic stability in developing countries : how much is enough?. World Bank Policy Research Observer[Em linha]. Vol. 21, nº 2 (Fall 2006), p. 151-178. [Consult. 26 Jun. 2015]. Disponível em WWW: <URL: http://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-3456>.

MONTIEL, Peter J. – International macroeconomics. Chichester : Wiley-Blackwell, 2009.

MONTIEL, Peter J. - Macroeconomics in emerging markets. 2nd ed.. Cambridge : Cambridge University Press, 2011.